BGE Customers to Face Heftier Energy Bills in June

Dominion Virginia Power has asked state regulators for permission to raise rates this year by about 4 percent to cover rising fuel costs. That would go into effect July 1 for Dominion's 2.1 million customers in Virginia, including 780,000 in the Washington region.

The increase would raise a typical bill for a residential customer using 1,000 kilowatt-hours a month from $87.18 to $90.59.

In Maryland, the rate shock is largely the result of 1999 legislation that sought -- unsuccessfully -- to foster competition among residential providers in Maryland and froze rates for several years. The freeze in the BGE territory expired last July, prompting the company to return to what it said were market rates -- but the move outraged consumers.

In a 105-page order explaining its decision, the Public Service Commission noted that in public hearings, its members had been urged to continue a rate freeze while broader issues affecting electricity prices were more fully investigated. But the order said the legislation passed last year limiting this year's increase to 15 percent did not allow that. The law passed by the legislature explicitly says rates should reflect the market by January.

Word of the increase angered some BGE customers.

Emma Hawes, a retiree in Bowie, said she might curtail using air conditioning. Her summer electricity bill typically runs $150 to $175. The increase would push it over her comfort zone.

"I'm already paying enough," she said. "My gas bill was unbelievable this winter, and everybody knows what is happening with gasoline at the pump."

Carol Gordon of Crofton said her monthly bill averages $130 when she's not using air conditioning or heat, and about $230 during the winter and summer. With the increase, she expects to pay about $200 during low-usage periods and about $350 in very cold and very hot weather.

"This is not good, not good at all," said Gordon, who lives in a single-family home.

During last year's campaign, O'Malley accused the commission, which then had a majority of Ehrlich appointees, of "rubber-stamping" BGE's rate request. Yesterday, the tables were turned.

"O'Malley's pledge to hold the line on rate increases and help working families was a false campaign promise," state GOP Chairman James Pelura said in a statement. "His lack of visibility on this issue shows he will do and say whatever it takes to get elected."

O'Malley spokesman Rick Abbruzzese said O'Malley was reviewing the commission's order but said it suggests that "right now, there is no incentive for BGE to keep rates down. That must be changed. And we need to ensure that we provide help to people living on low and fixed incomes."

In a statement, BGE said that during the time rates have been capped in Maryland, "global energy prices have soared for all fuel inputs, resulting in significantly higher costs for electricity. However, even after the price moves to market rates, BGE's total rate for electricity will still be lower than major metropolitan centers in the Mid-Atlantic and Northeast regions."